Inditex posts 5.4% rise in Q1 profit

Inditex, one of the world’s largest fashion retailers, reported Wednesday higher profits in its more recent financial quarter despite growing competition from ultra-low-cost online retailers.

The Spanish owner of Zara, whose other brands  include Massimo Dutti, Pull & Bear and Bershka, reported profit of 1.38 billion euros ($1.6 billion) for the three months to April 30, the first quarter of its financial year, up 5.4 percent from a year earlier.

Revenue rose 5.8 percent to 8.75 billion euros, Inditex said in a statement.

It said the performance reflected the resilience of its business model in what it called a highly fragmented fashion market.

Like many retailers, the company is facing pressure from fast-fashion online retailers such as Shein, whose rapid growth has disrupted established apparel groups.

Inditex is also navigating uncertainty linked to US trade policy under President Donald Trump, as the United States is one of its biggest markets outside Spain.

The retailer had already said in March that the impact of the Middle East conflict on its operations had been limited.